UK retailers face an annual loss of £4.3 billion due to subscription cancellations stemming from outdated payment details, according to research by Opinium for Acquired.com. Nearly 38% of adults reported canceling a subscription for this reason, averaging a £210 loss per adult. Younger consumers, especially in London, are significantly affected. The problem arises mostly when customers' credit or debit cards expire or are replaced, creating friction between retailers and consumers. Acquired.com's Eline Blomme emphasizes the urgent need for retailers to address this issue to reduce churn and subsequent financial losses.
Keeping payment details up to date has traditionally been a challenge, often leading to unnecessary consumer friction. When retailers ask customers to manually update their card information, there's also a risk that the customers will not get around to doing it. This potentially leads to churn, and as our research demonstrates, this is becoming a costly issue for retailers.
Retailers may be losing £4.3 billion annually due to consumers cancelling subscriptions prompted by obsolete payment details, highlighting a significant issue in recurring commerce.
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